What are the four primary risk components?

The four primary risk components are:

1. Market Risk: The potential for losses due to fluctuations in market prices and rates.
2. Credit Risk: The risk that a borrower will default on their obligations, affecting lenders and investors.
3. Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or external events.
4. Liquidity Risk: The risk that an entity will not be able to meet its short-term financial obligations due to an inability to convert assets into cash quickly.